LNG plant to be built will help save Rs. 10 bn annually – Dallas

By Ifham Nizam

The government would save nearly Rs. 10 billion annually when the first Liquefied Natural Gas (LNG) power plant is commissioned, a senior official of the Power and Energy Ministry said.

The construction work on the first LNG Plant would commence at the Lakdanavi Power Plant premises at Kerawalapitiya shortly, Power and Energy Minister Dullas Alahapperuma said.

Alahapperuma said his ministry was doing its utmost to help strengthen the national economy by keeping the price of electricity low.

The Power Purchase Agreement (PPA) would be inked in late November and the construction would begin in December.

The first phase of the 350MW Open cycle 225 MW would be completed in 21 months and 125MW Combined Cycle in one year, a senior Electrical Engineer told The Island.

The Cabinet has approved a proposal by Minister Alahapperuma for constructing the first LNG power plant here.

Lanka Transformers Limited (LTL), whose majority stake is held by the Ceylon Electricity Board (CEB), has received Cabinet approval for the construction.

The construction work of the Lakdanavi Natural Gas Power Plant would mark the completion of the first year in office of President Rajapaksa since being elected, Minister Alahapperuma said.

At present, about 35 per cent of Sri Lanka’s national power generation comes from diesel plants and the cost of production per unit is as high as Rs. 30 and LNG power plants can produce a unit at Rs. 15. Reducing the contribution of diesel power plants to the national grid to five per cent by the year 2025, along with parallel a reduction in toxic diesel fumes, was one of the key goals, the Minister said.

Alahapperuma also said that during the last five years, only 300MW had been added to the national grid although the demand for electricity was growing at around six per cent annually.